Robert Shiller joins Markets Hub to discuss U.S. home prices, which continued to push Standard & Poor's Case-Shiller home-price indexes down to new post-crisis lows in February. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... the case Shiller home price index showed more deterioration that were it not as faster rate ... interesting Lee enough when we had to explain to what all means ... Robert Shiller he'll professor and co founder of the Case Shiller index ... more for show the hell are you ... I ... still you know I'm I'm here to meet tomorrow's driven interest ... were destroyed about this briefly in it thinks is a good report I'm I'm really commits eyelet of the year the year numbers in my seat still down when you make of these numbers this morning ... rather the most optimistic thing is that on a seasonally adjusted basis the one-month numbers are ... up just a tiny bit ... so it ... is positive in that sense ... this is the slow seasons though ... but if you look at the rate of decline sore to shore ... it isn't the case for that were seen ... on those rates of declines are slow and Iran um I just to the buried in all the negativity in on coming groping around her for any sort of positive that I can find ... what we've seen it yet baby crying prices for ... five years now ... the peak in two thousand and six with more than five years ... but there is up there was an upswing in two thousand I was the first time homebuyer tax credit ... can outspend ... can sell you down I don't know that I see ... you just extrapolate to turn that looks pretty steady downs though ... not say when should extrapolate that because the temptation to do that ... when you look at the report says now that home prices are back to around two thousand to two thousandthree levels ... which is really about what the housing bubble store to get you know really started going so we're back to that for back to the open sore burned off the entire housing bubble ... and wondering why prices to fall ... well because ... past troubles in history have often overshot ... yes he did do a real inflation adjusted version of the home prices ... for cattle that the level we've done that ... typically over the last century ... they have a show that ... a real ... uptrend ... so we're kind of normal right these are normal home prices ... the only question is ... remember psychology matters so ... if we get ... kitchen and were not running out of this recession that off at work but without the recession but were still slow period ... so I don't know that home prices will go up anytime soon ... the one of the interesting things in the report today ... you see a pretty big disparity between some of the markets ... of Phoenix up to three point three percent from year-ago Atlanta down seventeen point two percent from a year ago ... oh what's the what's going on here one is the market like Phoenix which was so Bailey overbuilt ... beginning to show ... several months of increases but Elaine now also horribly overbuilt ... just getting walloped ... well the ... difference between feedings in Atlanta is that it was one of the huge bubble cities ... I did drop ... in real terms something like sixty percent ... of ... conservative it was a huge correction or maybe it overshot ... of debt and with it ... I never had such a big bubble in not ... such a big collapse ... are ... I don't ... it ... is a very ... not entirely likable ... but it's for Nestle so what would you need to see them ... to say all right ... we've we've got nearer to if not had a bottom what sort of evidence are you looking for ... it to be able to make that sort of declaration ... well we're saying you know some evidence that ... means that way the ... numbers are up ... the National Association of Home Builders ... our ... numbers have been awful on the latest month for download ... consumer confidence and they can have that out but it's not clear that its holding ... I'd like to see more of that kind of mood I consistent basis ... topping that you don't have the basic story that would lead to another ... the real bull markets are earlier this century ... we don't have this success that move mood right now ... we're still enough on and so it is likely to be there with the of the NEP ... me about ... it you know I mean what ... fun it it's just a bit ... during the bubble for the big issues to those that use on home prices going up really next financial re ... eating seaweed growth ... no one the new cheaper to get back to a point where housing prices are more tightly ... part ... time work for the ... two we each growth which is really great either ... TV bring it back to a period like that ... well I'd I think they're a big prayer and the odd that they have to think about one of them is that ... people are are ... are you seem to be ... becoming Last ... entranced by the traditional American dream ... of a home in the suburbs ... that he's right ... you know a half hour to get to ... gas prices are high ... outlook Gardens is ambiguous ... I think people are thinking ... more of renting or are staying in the center City area ... it was that that that change going on that may last for many years ... I think is outweigh anything else if these changes are really happening ... they mean that we're not going to see are encouraging movements in the housing market in the foreseeable future ... what other factor in now is affordability is of course torture because home prices have fallen so far but you also have ... a mortgage rates at four percent ... new home sales data report was that we were up seven percent from a year ago existing home sales have been up ... about as much for your door to surprise ... that we are seeing more activity ... given how ... cheap that monthly payment is ... for our home by right now ... I know it it's really cute that I think it it might be a reasonable thing certainly is a reasonable thing if you want on the buy now ... he has the authority to lock in the low rate ... but now people are thinking that way ... I think the anxiety outweighs the interest rate now with with the thinking of buying a house your first thought is ... his night job secure ... do I really need this house